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Auditing Questions and Answer
Auditing Questions and Answer
Questions
1. __________ is a systematic examination of the books and records or a business
[A] Auditing
[B] Vouching
[C] Verification
[D] Checking
4. This kind of audit is conducted generally between two annual audit ______.
5. Before the work of audit is commenced, the auditor plans out the whole of audit work is called
_________.
[A] Selling
[B] inventory valuation
[C] Accounting
[D] Purchases
[A] Trusts
[B] Joint stock companies.
[C] Proprietorship concern.
[D] None of the above
10. The audit that is made compulsory under statute is called _________.
17. When a transaction has not been recorded in the books of account either wholly or partially
such errors are called as _________.
18. Verification of the value of assets, liabilities, the balance of reserves, provision and the
amount of profit earned or loss suffered a firm is called _________.
19. Vouching of the balances of all incomes and expenses account is known as vouching of
______.
23. The main object of the audit of the cash book may be ________.
24. One of the audit procedures to check the issue of share capital of the newly formed company
is __________.
25. The work of one clerk is automatically check by another clerk is called _________.
[A] Internal control.
[B] Internal check.
[C] Internal audit.
[D] None of the above.
[A] at par.
[B] at premium.
[C] at discount.
[D] all the above.
[A] Civil
[B] Criminal
[C] Civil and Criminal.
[D] Official
32. Cost audit under section 233(b) of the companies act is ___________.
[A] voluntary
[B] compulsory
[C] advisable
[D] avoidable
34. The most difficult type of misstatement to detect fraud is based on __________.
35. Professional skepticism requires that the auditor assume that management is _________.
[A] reasonably honest.
[B] neither honest nor dishonest.
[C] not necessarily honest.
[D] dishonest unless proved otherwise.
36. The use of an audit engagement letter is the best method of assuring the auditor will have
which of the following?
37. An auditor who accepts an audit but does not posses the industry expertise of the business
entity should ______________.
[A] assets
[B] liabilities
[C] income and expenditure accounts where appropriate.
[D] all of the above.
42. In determining the level of materiality for an audit what should not be considered?
43. Which of the following statement is most closely associated with analytical procedure
applied at substantive stage?
44. Of the following, which is the least persuasive type of audit evidence?
[A] AAS-7.
[B] AAS-8.
[C] AAS-9.
[D] AAS-3.
47. The quantity of audit working papers complied on engagement would most be affected by
_________________.
48. Which of the following is not an advantage of the preparation of working paper?
49. Which of the following sections deals with qualification of the auditor?
[A] within one month of completion of capital subscription state of the company
[B] within one month of the promotion of the company.
[C] within one month of the commencement of the business of the company.
[D] within one month of incorporation of the company.
51. In case the directions fail to appoint first auditors, the shareholders shall appoint them at
_______ by passing a resolution.
52. The auditor of a government company is appointed by the C & AG. His remuneration is
fixed by _____________.
53. Which of the following statement is not correct regarding removal of first auditor before
expiry of the term?
55. Auditor of a _______ company does not have right to visit foreign branches of the company.
56. Special audit is conducted at the order of the central government. Which section givers such
powers?
57. As per C & AG Act, 1971 the tenure of the comptroller and Auditor General is ______ a.
four years.
59. Audit of rent, deposits and remittances does not cover ____________.
60. The statutory auditor of a Government Company submits his report to _________